U.S. Offshore Wind Power Economic Impact Assessment

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Issue Date | March 2020

Prepared By American Wind Energy Association Table of Contents

Executive Summary...... 1 Introduction ...... 2 Current Status of U.S. Offshore Wind...... 2 Lessons from Land-based Wind...... 3 Announced Investments in Domestic Infrastructure...... 5 Methodology ...... 7 Input Assumptions...... 7 Modeling Tool...... 8 Results ...... 9 Base Offshore Wind Development Scenario...... 9 High Offshore Wind Development Scenario...... 11 Conclusion ...... 13 Endnotes ...... 15 About AWEA and Report Authors...... 16 Executive Summary

The offshore wind industry is poised for exponential growth in the United States. Market projections anticipate between 20,000 to 30,000 megawatts (MW) of offshore wind capacity will be operational by 20301, representing between $28 – $57 billion of investment in the U.S. economy. In addition to delivering customers with clean, affordable, and reliable power, the offshore wind industry will also contribute a variety of economic benefits to the U.S. economy, including supporting tens of thousands of jobs, billions in economic output, and investment in critical coastal infrastructure.

AWEA conducted the following analysis to estimate the potential economic impacts of offshore wind development off the East Coast of the United States through 2030. The analysis considers two scenarios— 1) a base scenario of 20 GW of operating offshore wind power by 2030 and modest local content; and 2) a high scenario of 30 GW of operating offshore wind power by 2030 and increased local content. Our analysis finds that in a high build and high domestic content scenario, offshore wind could support up to 83,000 jobs and deliver $25 billion annually in economic output by 2030.

Specifically, this analysis estimates:

• The offshore wind industry will invest $28 to $57 billion in the U.S. economy between now and 20302, depending on installation levels and supply chain growth within the U.S. • Offshore wind project development, construction, and operations will support 19,000 to 45,000 jobs by 2025 and 45,000 to 83,000 jobs by 2030. • Investment in the U.S. offshore wind industry will deliver $5.5 to $14.2 billion per year by 2025, and $12.5 to $25.4 billion per year by 2030 in economic output.

Summary Results

2025 2030 Operating Offshore Wind Capacity 9 – 14 GW 20 – 30 GW Offshore Wind Jobs 19,000 – 45,000 45,000 – 83,000 Annual Economic Output $5.5 – $14.2 billion $12.5 – $25.4 billion

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 1 Introduction

The United States has vast offshore wind energy resources. The areas off our coasts possess an offshore wind potential of more than 2,000 gigawatts (GW)3, or nearly double the nation’s current electricity use.4 This potential presents an enormous opportunity to deliver large amounts of clean, reliable electricity to the country’s largest population centers along the coasts. Harnessing America’s offshore wind resources will also create thousands of jobs, draw new investment to the U.S., revitalize ports and coastal communities, and create opportunities for American manufacturing.

Current Status of U.S. Offshore Wind

The U.S. currently has one operational offshore wind project with many more on the way. The nation’s first commercial offshore wind project, the Block Island Wind Farm, came online in December 2016. Developed by Deepwater Wind, the Block Island Wind Farm is a 30 megawatt (MW) project with five turbines located three miles off the coast of Block Island, Rhode Island.

Looking forward, several projects are now in various stages of development across 15 offshore wind energy leases issued by the Department of Interior’s Bureau of Ocean Energy Management (BOEM). In a December 2018 offshore wind lease auction, three separate wind energy leases each sold for a record $135 million, underscoring robust competition and market interest. In total, all offshore wind lease auctions to date have totaled over $472 million. BOEM is now in the planning stages for areas off California, Hawaii, New York, and South Carolina.

East Coast Offshore Wind Projects and Lease Areas

MA NY CT RI Bay State Wind Revolution Wind (704 MW) South Fork Wind Farm Vineyard Wind 1 PA (130 MW) (800 MW) Sunrise Wind (880 MW) Park City Wind (804 MW) Vineyard Wind Equinor NJ Empire Wind (816 MW) Mayower Wind (804 MW)

Atlantic Shores O shore Wind

DE Ocean Wind (1,100 MW) Ørsted, PSEG

MD Skipjack Wind Farm (120 MW) MarWin (269 MW)

Unnamed Dominion Energy Project (2,640 MW)

VA Coastal Virginia O shore Wind (12 MW)

NC Avangrid Renewables

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 2 State Offshore Wind Targets

States along the East Coast are driving demand for However, component manufacturers began investing offshore wind. Connecticut, Maryland, Massachusetts, heavily in domestic manufacturing facilities to serve New Jersey, New York, and Virginia have established the new, growing wind industry. By 2007, 100 domestic targets to procure a total of 25,400 MW of offshore facilities served land-based wind energy. Today, there wind by at least 2035 and have selected over 6,000 MW are over 500 facilities across 42 states manufacturing of projects as of February 2020 to help meet these goals. parts for land-based wind projects and employing a These policies provide certainty for the industry that workforce of over 25,000. While larger components will enable investment and lead to the creation of an are manufactured in states with strong wind resources, American supply chain. hundreds of wind-related manufacturing facilities across the rest of the country make subcomponents for wind States along the East Coast are driving turbines. For example, the Southeast is home to over 100 facilities serving the wind industry despite having minimal demand for offshore wind. wind power installations.5

The growth of the offshore wind industry holds similar Lessons from Land-based Wind promise for U.S. job growth, project construction and operations, and domestic manufacturing. It will also create new opportunities for port revitalization and The history of the land-based wind industry in the U.S. vessel construction. To date, project developers and can provide important insights for how the offshore wind manufacturers have announced planned investments industry may grow. Thanks to technology improvements totaling more than $1.3 billion across a variety of and cost reductions, land-based wind capacity grew from projects including ports and new manufacturing facilities. 2,500 MW in 2000 to over 105,500 MW at the end of While offshore wind projects will be concentrated on 2019. As wind farms spread across the country, so did the East Coast in the early years of the industry, there is wind-related jobs and manufacturing. In the early days an opportunity for economic benefits to spread to other of the U.S. wind industry, many products were imported parts of the country, such as the Gulf Coast. from Europe and other global manufacturing centers.

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 3 Active Wind-Related Manufacturing Facilities

Gulf Coast manufacturers and service providers have The offshore wind industry is well-positioned to achieve already been working to support the offshore wind significant growth and deliver jobs and economic industry. The jacket foundations for the Block Island benefits along the East Coast and throughout the wind farm were manufactured in Louisiana by Gulf Island rest of the country. The speed at which the industry Fabrication, and vessels operated by Louisiana-based builds projects and the degree to which manufacturing liftboat operator Falcon Global were used as feeder and supply chains migrate to the U.S. will be key vessels for Block Island. Gulf Island Fabrication also has determinants of the industry’s impact on economic a contract with US Wind to build a foundation for an output and job support. If the U.S. offshore wind industry offshore met tower. follows in the same general footsteps of land-based wind, the results will be significant. Developing, building, and operating offshore wind projects offers the promise of job creation and a chance for skilled workers to apply their craft to a new industry. Offshore wind jobs are good, well- Offshore wind jobs are good, well-paying jobs requiring paying jobs requiring a diverse technical a diverse technical workforce spanning an estimated 74 occupations. A sample of jobs the industry will create workforce spanning an estimated 74 include electricians, welders, turbine technicians, occupations. longshoremen, truck drivers, crane operators, ironworkers, pipefitters, pile drivers, engineers, mechanics, scientists, and offshore equipment and vessel operators.

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 4 Announced Investments in storage, and manufacturing and storage space for large Domestic Infrastructure turbine components. Domestic manufacturing represents another major Project developers and manufacturers have been active investment opportunity. In addition to manufacturing in announcing investments to support the development the blades, towers, and nacelles of the turbines of the emerging offshore wind industry in the United themselves, there is a huge opportunity for States. So far, companies have announced investments of manufacturing of foundations, substations, cables, steel, $307 million in port-related infrastructure, $650 million and other subcomponents, as well as critical logistics in transmission infrastructure, and $342 million in U.S. infrastructure such as transport and installation vessels manufacturing facilities and supply chain development. and equipment. To highlight a few announcements, Many other announcements have been made to establish in 2019, developer Ørsted and manufacturer EEW offshore wind hubs and factories along the coast that signed an agreement to establish a factory for steel have not yet listed a specific dollar amount but represent foundations in Paulsboro, New Jersey. In October 2019, millions of dollars of additional investment. Companies Vineyard Wind announced a partnership with Marmon have also signed contracts to build four new U.S.-flagged Utility to upgrade and build out its manufacturing crew transfer vessels to support offshore wind project facilities to become the first U.S.-based supplier of development. In addition to physical infrastructure inter-array cable cores. Early in 2020, Siemens Gamesa investments, offshore wind companies are investing in Renewable Energy stated they are “actively considering” new U.S. offices, workforce development and training, a $200 million blade manufacturing facility in Virginia. technology research and development accelerator Meanwhile, Welcon and Marmen have agreed to programs, U.S.-based engineering and permitting support build a new manufacturing facility in the Northeast to services, and wildlife research. manufacture towers and fixed and floating foundations. The development of local supply chains has been an integral component of state energy policies supporting Project developers and manufacturers offshore wind development. Most, if not all, states have announced planned investments with active offshore wind procurement plans explicitly treat the development of an in-state supply chain as totaling more than $1.3 billion across a one of the key non-price decision criteria. Thus, state- variety of projects including ports and level renewable energy policy is creating enormous competitive pressure focusing developer attention new manufacturing facilities. on maximizing long-term job growth and economic development. New vessels are also needed to support offshore A large focus of many U.S. investment announcements wind development in the U.S. and transport crews has been improvements to port infrastructure, which and components to and from wind farms. Last year, are needed to ensure ports can serve as staging areas contracts were signed for four new crew transfer for manufacturing, assembly, and transportation of large vessels to support the offshore wind industry. Ørsted offshore wind components. Companies including Ørsted, has partnered with WindServe Marine LLC to build Eversource, Vineyard Wind, Equinor, and US Wind are two crew transfer vessels for its planned offshore wind planning to establish offshore wind assembly hubs and farms. Atlantic Wind Transfers, an offshore wind support operations and maintenance hubs across ports from company that owns the only crew transfer vessel Maryland up to Massachusetts. For example, Ørsted and currently operating in the U.S., signed a multi-million- Eversource have a public-private partnership with the dollar contract for two new crew transfer vessels that state of Connecticut to invest $157 million in upgrades will be built by Blount Boats in Rhode Island. to State Pier’s infrastructure and heavy-lift capabilities in New London. In New York, Equinor, Ørsted, and These announced investments are likely only a fraction Eversource have announced combined investments of $70 of the total investments to be made by the industry, as million for port improvements across the state. In addition, many projects are still in early stages of development in the event that offshore wind project developers do not and states have only completed a handful of competitive build sufficient onshore transmission assets, transmission solicitations. company Anbaric has announced that it may spend up to $650 million to convert the former Brayton Point coal plant in Massachusetts into an offshore wind facility with a high voltage direct current converter, onsite battery

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 5 Table 1: Announced Domestic Infrastructure Investments to Support Offshore Wind Industry

Investment Type Amount Company(s) Location Year Announced

Manufacturing: Steel $76,000,000 US Wind & Ørsted Maryland 2017

Manufacturing: Foundations Not specified Ørsted & EEW Paulsboro, New Jersey 2019

Manufacturing: Foundations Not specified Equinor Port of Coeymans, New York 2019

Manufacturing: Towers & Foundations Not specified Marmen & Welcon Northeast US 2019

Manufacturing: Blades $200,000,000 Siemens Gamesa Virginia 2020

Manufacturing: Cables $4,000,000 Marmon Utility Seymour, Connecticut 2019

Manufacturing: Cables Not specified Nexans Not specified 2019

Ports; Transmission infrastructure $650,000,000 Anbaric Brayton Point, Somerset, Massachusetts 2019

Ports $157,000,000 Ørsted & Eversource, New London, Connecticut 2020 CT Port Authority

Ports Not specified Vineyard Wind Bridgeport, Connecticut 2019

Ports $13,200,000 Ørsted Tradepoint Atlantic, Maryland 2019

Ports $26,400,000 US Wind Tradepoint Atlantic, Maryland 2017

Ports $50,000 Vineyard Wind New Bedford, Massachusetts 2019

Ports Not specified Ørsted Atlantic City, New Jersey 2019

Ports $60,000,000 Equinor New York (Multiple Ports) 2019

Ports $10,000,000 Ørsted & Eversource New York (Multiple Ports) 2019

Ports Not specified Ørsted & Eversource Port Jefferson, New York 2019

Ports $40,000,000 Ørsted & Eversource Port of Providence and North Kingston, Rhode Island 2018

Supply chain $15,000,000 Ørsted New Jersey 2019

Supply chain $1,500,000 Ørsted & Eversource Rhode Island 2019

Supply chain $10,000,000 Vineyard Wind Massachusetts 2018

Turbine testing facility $35,000,000 MHI Vestas Clemson University, South Carolina 2017

Vessel construction: Crew transfer vessel Not specified Ørsted & WindServe North Kingstown, Rhode Island 2019 Marine

Vessel construction: Crew transfer vessel Not specified Atlantic Wind Transfers Warren, Rhode Island 2019 & Blount Boats

*Announcements as of February 20, 2020. This list may not capture all announcements.

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 6 Methodology

This analysis estimates jobs, economic output, and determine future domestic content expectations.6 Future economic value add resulting from the development and offshore wind installation estimates are based on third operation of offshore wind projects on the East Coast of party consultant forecasts as of year-end 2019.7 the U.S. through 2030. Economic benefits extend beyond initial project expenditures as project spending circulates This analysis estimates economic impacts for two throughout the economy, delivering additional spending scenarios. The “base” scenario assumes 20 GW of and job support. Capturing the initial and subsequent offshore wind build by 2030. Annual impacts are impacts stemming from offshore wind projects provides estimated for years 2025 and 2030 assuming 2 GW a full picture of the economic contributions the offshore are built in each year. The domestic content of offshore wind industry can deliver to the U.S. wind farms increases from 30% in 2025 to 50% in 2030. The “high” scenario assumes 30 GW of offshore wind is Input Assumptions installed by 2030, with annual impacts for years 2025 The magnitude of economic benefits depends on three and 2030 evaluated assuming 3 GW deployed in each key inputs: annual offshore wind project capacity year. Domestic content rises to 40% in 2025 and 60% installations; domestic content of the components in 2030. Offshore wind project costs are the same for and services required to develop, build, and operate both scenarios. Table 1 outlines the assumptions over offshore wind projects; and the overall costs to develop time for the two scenarios. offshore wind projects. For comparison, domestic content of land-based wind The ability of the domestic supply chain to support the energy in the U.S. grew from 20% in 2005 to 67% by development of offshore wind power is expected to 20118, 9. This level of growth in the domestic supply chain increase over time as domestic manufacturers and service is more rapid than the high scenario for offshore wind, providers react to this new industry and global turbine suggesting this analysis provides a conservative outlook. component suppliers look to invest in U.S. manufacturing If the offshore industry follows a similar trajectory as facilities. AWEA conducted expert interviews with leading land-based wind, the potential economic benefits may be offshore wind developers and turbine manufacturers to greater than those depicted in this analysis.

Table 2: Annual Offshore Wind Installations and Domestic Content Assumptions

2025 2030 Base Scenario Annual Installations 2,000 MW 2,000 MW Domestic Content 21% 45% Project Capital Costs $3,900/kW $3,250/kW Annual O&M Costs $94/kW $79/kW High Scenario Annual Installations 3,000 MW 3,000 MW Domestic Content 32% 60% Project Capital Costs $3,900/kW $3,250/kW Annual O&M Costs $94/kW $79/kW

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 7 Modeling Tool To estimate domestic economic impacts from offshore • Turbine and supply chain impacts captures the wind, we used the National Renewable Energy economic and employment benefits from spending Laboratory’s Jobs and Economic Development Impact on turbine equipment, materials, and other offsite (JEDI) model for offshore wind10. JEDI estimates purchases of goods and services. For operational wind economic impact outputs from U.S. offshore wind projects, this tier captures the impact from spending energy development in three tiers: on replacement components and offsite labor.11 • Induced impacts are the changes that occur in • Product development and onsite labor impacts household spending as household income increases or capture the economic and employment benefits decreases as a result of the direct and indirect effects related to direct spending on development and from the development, construction, and operation of construction labor and services, including engineering, offshore wind projects. design, and other professional services for project development. For operational wind projects, onsite labor impacts capture economic and employment benefits from hiring wind farm workers, including field technicians, administration and management.

Block Island Wind Farm, Rhode Island

Photo by Deepwater Wind

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 8 Results

This paper reports the economic impacts of developing economic activity resulting from the installation of offshore wind for two principal phases of activity: 1) new wind projects in that year only. The O&M impacts project development and construction, and 2) project represent annual figures associated with the total operation and maintenance (O&M). Project development offshore wind fleet operating by that year. For example, and construction impacts are the result of one-time operations and maintenance impacts in 2025 capture the expenditures required to bring the project into operation. In economic impacts resulting from annual spending across contrast, project operations and maintenance expenditures all offshore wind projects in operation as of 2025. are required every year to keep the project in operational Across both scenarios, project development, construction, condition. and supply chain activities support the majority of offshore wind jobs earlier in the decade. However, as The economic impacts reported in this analysis are defined domestic manufacturing is established and more projects as follows: start operation, turbine component manufacturing and operations jobs make up a larger share. • Jobs: Refers to full-time equivalent (FTE) employment at a given point in time. One FTE is equivalent to one Base Scenario person working 2,080 hours for 1 year. In the base scenario, the development of 20 GW of • Economic output: Refers to economic activity or the offshore wind power results in $28 billion invested in total value of production in the economy that occurs the U.S. economy by 2030. By 2030, as a result of this as a result of project investment. investment, the U.S. offshore wind industry will support an • Economic value added: Represents the difference estimated 45,000 jobs and drive $12.5 billion annually in between gross economic output and the cost of economic output .12 intermediate inputs. It includes payments made to workers, proprietary income, interest, rents, royalties, Employment dividends, and profits, and indirect business taxes. In the base scenario, the U.S. offshore wind industry will For each year in the following tables, the project support an estimated 19,000 jobs by 2025 growing to development and construction impacts represent over 45,000 jobs by 2030 (Table 3).

Table 3: Offshore Wind Full-Time Equivalent Jobs Supported in the United States in Base Scenario 2025 2030 Project Development and Construction Project Development and Onsite Activity 2,636 3,583 Turbine and Supply Chain 6,805 14,548 Induced 5,278 10,517 Total 14,719 28,648 Operations and Maintenance Onsite Activity 761 2,869 Supply Chain 2,209 8,282 Induced 1,520 5,683 Total 4,490 16,834 Total Project Development and Onsite Activity 3,397 6,452 Turbine and Supply Chain 9,014 22,831 Induced 6,798 16,200 Total 19,209 45,483

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 9 Project development and onsite jobs are relatively combined activity will further induce $548 million in added constant from year to year since installation levels are held value. In addition, operational offshore wind projects are constant at 2,000 MW per year. The primary driver of new expected to deliver $877 million in annual value added in development and construction jobs is increased domestic 2025, including $146 million from direct, onsite activities. manufacturing and domestic service provisioning. The number of O&M jobs, on the other hand, increases along The value added to the U.S. economy from constructing with the cumulative amount of operating offshore wind and operating new offshore wind projects in 2030 will be power capacity. In the base scenario, every 2,000 MW much greater than 2025 due to increased domestic content of installed offshore wind supports an additional 1,000 and growth of the offshore wind project fleet. By 2030, operations and maintenance jobs.13 By 2030, 20,000 MW offshore wind contributes $7.0 billion in added value to of operational offshore wind power supports an estimated the U.S. economy in the base scenario. This includes $493 17,000 operations-related jobs, including nearly 3,000 million in project development and onsite activities, $2.1 onsite jobs. billion in manufacturing and supply chain needs, and $1.1 billion in induced value. In addition, O&M activities across Economic Output and Value Add the 20,000 MW offshore wind fleet in 2030 are expected to add an additional $3.3 billion in economic value. In the base scenario, annual offshore wind activity contributes $2.8 billion in added value to the U.S. economy In total, offshore wind activity is expected to support an in 2025 (Table 4). This includes $371 million from project estimated $5.5 billion in new economic output per year in development and onsite construction activities and $965 2025, including $1.7 billion driven by O&M activities. This million from manufacturing and supply chain needs. The swells to $14.2 billion in 2030.

Table 4: Offshore Wind Economic Impact Summary for Base Scenario

2025 2030 Output Value Add Output Value Add Project Development and Construction, $millions Project Development and Onsite Activity $471 $371 $597 $493 Turbine and Supply Chain $2,237 $965 $5,128 $2,099 Induced $1,008 $548 $1,987 $1,090 Total $3,716 $1,884 $7,712 $3,681 Operations and Maintenance, $millions Onsite Activity $146 $146 $553 $553 Supply Chain $1,069 $481 $4,009 $1,798 Induced $529 $251 $1,973 $944 Total $1,744 $877 $6,534 $3,295 Total Annual Economic Impacts, $millions Project Development and Onsite Activity $616 $517 $1,150 $1,046 Turbine and Supply Chain $3,306 $1,446 $9,137 $3,896 Induced $1,537 $799 $3,959 $2,034 Total $5,460 $2,761 $14,246 $6,976

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 10 High Scenario in 2030. In addition, jobs supporting the operation and maintenance of 30,000 MW of offshore wind totals over Under a more aggressive scenario, the wind industry 23,000 in 2030 in the high scenario. is expected to invest $57 billion in the U.S. economy by 2030 to develop 30 GW of offshore wind power. As a result of this investment, in 2030 the U.S. offshore wind Economic Output and Value Add industry supports 83,000 jobs and drives $25 billion Assuming 3,000 MW of yearly offshore wind power annually in economic output. deployment, offshore wind activity will contribute an estimated $6.2 billion in added value to the U.S. Employment economy in 2025 (Table 6). Project development and onsite construction activity is expected to add $807 In the high scenario, the U.S. offshore wind industry is million, while manufacturing and supply chain will estimated to support nearly 45,000 jobs by 2025 and add an additional $2.6 billion in value. The combined 83,000 jobs by 2030 (Table 5). The large increase in activity will further induce $1.4 billion in added value. assumed domestic content of wind turbine components and balance of plant equipment is primarily responsible In 2025, operational offshore wind projects are for the large increase in jobs supported in the high expected to deliver $1.3 billion in annual value added, scenario as compared to the base scenario. including $205 million from direct, onsite activities.

Project development and construction will support the In 2030, total expected value add grows to $12.5 billion, largest volume of jobs, estimated at nearly 59,000 jobs including $1.1 billion in project development and onsite

Table 5: Offshore Wind Full-Time Equivalent Jobs Supported in the United States in High Scenario 2025 2030 Project Development and Construction Project Development and Onsite Activity 5,845 8,367 Turbine and Supply Chain 18,114 29,186 Induced 13,623 21,377 Total 37,582 58,930 Operations and Maintenance Onsite Activity 1,142 4,304 Supply Chain 3,651 10,565 Induced 2,470 8,713 Total 7,263 23,582 Total Project Development and Onsite Activity 6,987 12,671 Turbine and Supply Chain 21,765 39,751 Induced 16,093 30,090 Total 44,845 82,512

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 11 activity, $4.2 billion in manufacturing and supply chain In total, offshore wind activity supports an estimated activity, and $2.2 billion in induced value. Operations $12.5 billion in new economic output per year in and maintenance activities across the 30,000 MW 2025, including $2.6 billion driven by operations and offshore wind fleet are expected to add an additional maintenance activities. By 2030, annual economic $4.9 billion in economic value. The large increase in output increases to $25.4 billion. manufacturing and supply chain impacts is the result of increasing domestic manufacturing capabilities, especially of core turbine components.

Table 6: Offshore Wind Economic Impact Summary for High Scenario

2025 2035 Output Value Add Output Value Add Project Development and Construction, $millions Project Development and Onsite Activity $966 $807 $1,311 $1,140 Turbine and Supply Chain $6,288 $2,614 $10,246 $4,191 Induced $2,583 $1,412 $4,035 $2,215 Total $9,837 $4,833 $15,592 $7,546 Operations and Maintenance, $millions Onsite Activity $205 $205 $812 $812 Supply Chain $1,641 $737 $6,002 $2,692 Induced $797 $382 $2,947 $1,415 Total $2,643 $1,324 $9,761 $4,919 Total Annual Economic impacts, $millions Project Development and Onsite Activity $1,171 $1,012 $2,123 $1,951 Turbine and Supply Chain $7,929 $3,350 $16,248 $6,882 Induced $3,380 $1,794 $6,982 $3,631 Total $12,480 $6,156 $25,353 $12,464

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 12 Conclusion

The growth of the U.S. offshore wind industry is expected to deliver significant economic benefits over the next decade and beyond. In a high scenario with 3,000 MW installed per year and 60% domestic content, these benefits could reach $25 billion per year and support over 83,000 jobs by 2030. These benefits do not account for additional value offshore wind projects will deliver through tax revenues to local, state, and federal jurisdictions, emissions reductions and associated health savings, and direct payments supporting workforce development or host communities.

These offshore wind benefits will not be limited to coastal states where the projects are built. While activity will be concentrated in coastal states close to the offshore wind projects, supply chains and service providers across the country will have an opportunity to support this new industry. Outside of the large turbine components, offshore wind represents an opportunity for domestic manufacturing of steel for foundations, substations and vessels, cables to transport the electricity, and U.S. flagged vessels to move components and workers to and from the project site. The oil and gas industry along the Gulf Coast is a prime example of an industry with an opportunity to leverage their expertise in offshore structures and offshore drilling and apply it to offshore wind.

The U.S. wind industry is already well on its way to delivering economic benefits across the county, with investment announcements currently totaling $1.3 billion and counting across the East Coast. These commitments to improve port infrastructure, establish manufacturing facilities, and provide training facilities, just to name a few, are indicative of what will follow as the industry grows.

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 15 U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 13 Block Island Wind Farm, Rhode Island 5 Turbine, 30 MW project developed by Deepwater Wind and owned by Ørsted. The first offshore wind farm in the United States.

16 | AWEA U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 16 U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 1 Endnotes

1 Bloomberg New Energy Finance, Wood Mackenzie 2 Reflects domestic investment only. Full project investment ranges from $80 – $106 billion. 3 National Renewable Energy Laboratory https://www.nrel.gov/docs/fy16osti/66599.pdf 4 Energy Information Administration 5 American Wind Energy Association 6 This analysis does not attempt to determine where in the U.S. the supply chain develops as the industry grows and the domestic content of offshore wind projects increases. 7 Wood Mackenzie and Bloomberg New Energy Finance. 8 AWEA U.S. Annual Market Report, Year Ending 2012 9 AWEA U.S. Annual Market Report, Year Ending 2009 10 Available at: https://www.nrel.gov/analysis/jedi/wind.html 11 Supply chain impacts are generally considered indirect, except for those impacts resulting from the initial round of spending on turbine components, which are considered direct effects. In this analysis, all supply chain activity, both direct and indirect are captured in the turbine and supply chain tier. 12 Includes direct, indirect, and induced economic output 13 Includes direct, indirect, and induced jobs

U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 17 U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 15 About AWEA

The American Wind Energy Association (AWEA) is the national trade association of the U.S. wind energy industry, the largest source of renewable energy in the country. With 1,000 member companies and over 114,000 jobs in the U.S. economy, AWEA serves as a powerful voice for how wind works for America. Members include global leaders in wind power and energy development, turbine manufacturing, and component and service suppliers. Learn more about wind energy on the AWEA website and on our blog, Into the Wind and follow us on Facebook, Twitter, and LinkedIn. http://supportoffshorewind.org

Authors

John Hensley, Vice President, Research & Analytics Celeste Wanner, Research and Analytics Manager

18 | AWEA U.S. OFFSHORE WIND POWER ECONOMIC IMPACT ASSESSMENT | 16 U.S. Offshore Wind Power Economic Impact Assessment

Prepared By American Wind Energy Association 1501 M St. NW, Suite 900 Washington, DC 20005

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